São Paulo – Latin America was the region that grew the most as a source of foreign direct investment (FDI) last year, according to the Global Investment Trends Monitor report, disclosed this Wednesday (27th) by the United Nations Conference on Trade and Development (Unctad).
"The region’s transnational companies, bolstered by strong economic growth at home, have increased their acquisitions abroad, particularly in developed countries where investment opportunities have arisen in the aftermath of the crisis," according to the document.
The document highlights investment made by Brazil, which reached US$ 11.5 billion, and Mexico, US$ 12.7 billion. He mentions acquisitions made by the Brazilians Vale, Gerdau, Camargo Correa, Votorantim, Petrobras and Braskem in the areas of iron ore, steel, foodstuffs, cement, chemicals and oil refining.
Total foreign investment by Latin American countries reached US$ 83.9 billion, a 76.4% over 2009. Other nations with important shares in that sum were Chile, Colombia and Venezuela.
This performance reflects an overall trend identified by the Unctad, of growing importance of developing nations and transition economies as sources of FDI.
In 2010, these countries accounted for 28% of the funds disbursed worldwide, as against 15% in 2007, when the global FDI flow reached its peak, prior to the financial crisis. That, according to the report, reflects "the strength of emerging economies, the dynamism of their transnational corporations and their growing aspirations to compete in new markets."
Furthermore, the survey reveals that 70% of the total originated from these nations targeted other developing countries and transition economies. Such phenomenon, according to the Unctad, is a reflection of the quicker recovery of emerging nations after the crisis and the more positive perspectives of these economies, compared with the developed countries.
This, however, does not mean that developed nations have not increased their foreign investment in 2010, but their growth was smaller, at an average of 9.9%. Among emerging countries, the growth rate was 22.7%. It is worth noting the performance of the United States, whose investment grew by 31.2% to reach US$ 325.5 billion. Total global disbursements exceeded US$ 1.3 trillion, a 13% increase over 2009.
*Translated by Gabriel Pomerancblum
